I would expect their operation to be of much lower risk than ours, all the infrastructure is there, just got to pump out the water, sample some ore and pay wages until gold is produced, all underground too it seems.... Also it is only $8.5mill as compared to $140mill, with a mine expected to produce around 1/4 the gold of ours.
The deal seems to be...
Borrow $8.5mill @ 12% interest. And also to give 5 million shares worth, $400k (5% of issued shares), warrants worth a decent chunk (another possible 5% of issued), royalties worth around $400k/annum and an upfront fee of 3% which is $255k...
Ressources Appalaches financial statements found here, http://www.sedar.com/FindCompanyDocuments.do
Wow a huge amount, over $1mill in incentives, which is around 13% of loan amount, or 6.5% per year over 2 years. 18.5% equivalent interest..... Holy bejeezers
(I hope I misunderstood that)
ATV Price at posting:
3.4¢ Sentiment: LT Buy Disclosure: Held
